On Sunday 15 January 2012 13:15:36 Binand Sethumadhavan wrote: > On 15 January 2012 11:45, <[email protected]> wrote: > > You are not paying a pip extra for > > quality, merely the cots of all the T & A and a tiny part for warranties.
> Also, in a lot of cases it is considered to be a valid strategy to > price a certain branded product much higher than the usual cost+margin > (and also artificially stifle supply) just to maintain the brand's > exclusivity and consequently value (Maybach cars, anyone?). First hand: Canon copiers were moving a tad slowly in 1985. Due to some snafu in the supply chain, deliveries choked. One person from Cal had ordered several machines. On hearing of the delay, he came down and offered a premium to redirect deliveries. since we were just entering east/NE, Supplies were diverted (without a hike). But that set the marketing dept afire. They quickly fired off letters to all saying that deliveries were delayed and rationing (oh I love those days) was on. They also "leaked" info about our government orders. and hiked prices by 20%. Orders climbed by 700% in a week. Canon never looked back in India. Rony check out 4P's of marketing. All your competitors have the same "quality" in a segment. -- Rgds JTD -- http://mm.ilug-bom.org.in/mailman/listinfo/linuxers
